Tron (TRX) Faces Price Chill After Founder’s Binance Transfer, But Network Activity Heats Up
Tron (TRX) defied the recent market downturn, boasting impressive network activity and technical indicators hinting at a price surge.
Tron (TRX) defied the recent market downturn, boasting impressive network activity and technical indicators hinting at a price surge. However, a sudden transfer of TRX by its founder, Justin Sun, to Binance sent a shiver down investors’ spines, causing the price to retreat.
TRON Network Activity Hits New Highs
IntoTheBlock recently tweeted about a significant development for Tron. Since the start of 2024, the number of daily active Tron addresses has been steadily climbing, approaching a whopping 2.5 million average. This dwarfs the numbers seen on other top Layer 1 blockchains, signifying a massive adoption and active user base for Tron.
Taking a deeper dive into TRX’s network activity using Artemis data, we see a clear upward trend in daily active addresses over the past month. This bullish trend is mirrored by the daily transaction volume on the blockchain. Additionally, captured value metrics like TRX fees and revenue also saw a positive increase last month.
However, a concerning dip in Tron’s DeFi space emerged over the last week, evident from the substantial decline in its Total Value Locked (TVL).
TRX/USD Technical Analysis Paints a Bullish (but Uncertain) Picture
TRX managed to be one of the few top 20 cryptocurrencies that remained green on the weekly chart, according to CoinMarketCap. At the time of writing, TRX sits at $0.1231, boasting a market capitalization of over $10.7 billion, solidifying its position as the 11th largest crypto.
Adding to the bullish sentiment was the rise in TRX’s long/short ratio. This metric indicates that bullish sentiment surrounding TRX is dominant in the market.
Taking a look at the charts on TradingView, we see some promising technical indicators. The Moving Average Convergence Divergence (MACD) displayed a clear bullish advantage, while the Chaikin Money Flow (CMF) registered a sharp uptick, hinting at a potential price continuation. However, a cause for concern emerged as Tron’s price touched the upper Bollinger Band. When the price reaches this upper limit, it can often signal a correction is on the horizon.
Founder’s Transfer Throws Cold Water on Bullish Hopes
In a surprising move, Justin Sun’s team transferred a massive TRX reserve to Binance on June 27th. This came just as TRX was defying the broader market decline. According to Arkham Intelligence data, the transfer included 173.821 million TRX, valued at roughly $21.37 million. This dump on the exchange reversed the positive trend, pushing Tron further away from the crucial resistance point of $0.124.
Will the Bulls Regroup?
The question remains: will TRX weather this storm? Analysts are divided. If a correction unfolds in the coming days, TRX’s price might fall to $0.115 as liquidation intensifies at that level. However, if the bulls can regain control, investors might soon see TRX touch $0.13.
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